This audio is auto-generated. Please let us know if you have feedback.

As part of taking on the top job at struggling fitness brand Peloton, CEO Barry McCarthy was offered $168 million in total compensation this year — a majority of which is from his new hire equity grant, according to a filing from the company this week.

McCarthy’s base salary is $1 million, the same as his predecessor John Foley. However, having joined in February, McCarthy’s prorated base salary for fiscal 2022 is $357,692, in addition to $167 million in stock options.

To cash in on the stock option — which vests over a period of four years — McCarthy would need to buy the 8 million shares at a $38.77 price he is allowed under the equity grant, then sell those shares for a profit. Peloton’s share price at the time of publication is $7.70.

Including his stock options, McCarthy’s compensation is around 2,299 times higher than the median employee’s, according to the filing.

In comparison, Walmart CEO Doug McMillon has a total compensation of around $25 million for 2022, according to a company filing from April. Included in this is a base salary of more than $1.2 million. Target’s CEO Brian Cornell was given a total compensation of more than $19.7 million for 2021 with a base salary of $1.4 million, per a company filing from April.

Peloton’s former CEO and co-founder left the company entirely last month, alongside co-founder Hisao Kushi. Shortly after, Peloton’s head of marketing and chief commercial officer exited the company as well.

Peloton cut 500 jobs — or roughly 12% of its workforce — earlier this month, and noted in a memo to employees that it lost about $100 million on retail last year. Under McCarthy, the brand has expanded beyond direct-to-consumer sales through partnerships to sell on Amazon and at Dick’s Sporting Goods.


Source link


Comments are closed.